If I buy the asset from overseas is it still applicable for the 50% investment allowance? And if so, can I include the freight? The issue of where the asset comes from is not critical to the claiming of the investment allowance.
Providing the asset is a new, primarily for use in your business in Australia and is an asset that is depreciable under Division 40 of the Tax Act it should be an eligible asset.
Where there are costs associated with installing the asset into your business, which could include freight costs to bring it into the country, then the cost base of the asset would include the installed price.
Where you have any unusual circumstances it is a good idea to discuss it with your accountants who can confirm all of the facts and relevant details.
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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